AT&T reiterates 2025 guidance, plans $20 billion in share buybacks

DALLAS - AT&T Inc. (NYSE:T) reiterated its full-year 2025 financial guidance and confirmed plans for $20 billion in share repurchases between 2025-2027, according to a company press release issued Monday ahead of CEO John Stankey’s scheduled appearance at the Goldman Sachs Communacopia + Technology Conference.

The telecommunications giant reported it remains on track with its previously announced financial targets, including growth in consolidated service revenue, adjusted EBITDA and adjusted EPS. The company also maintained its outlook for free cash flow and capital investment. With a P/E ratio of 16.4x and an attractive dividend yield of 3.75%, AT&T continues to demonstrate strong financial fundamentals. InvestingPro data reveals the company has maintained dividend payments for 42 consecutive years, making it a notable dividend aristocrat.

AT&T stated it continues to see "solid customer demand" in its wireless business during the third quarter. For its Consumer Wireline segment, the company expects subscriber net additions for both AT&T Fiber and AT&T Internet Air to be higher in the second half of 2025 compared to the first half.

The company reaffirmed its plans to expand fiber internet connectivity, projecting it will reach more than 60 million fiber locations by the end of 2030, approximately doubling its current coverage. This expansion includes organic deployment, the pending acquisition of Lumen’s Mass Markets fiber business, and locations served through its Gigapower joint venture.

AT&T also highlighted its recent agreement to acquire spectrum licenses from EchoStar, covering "virtually every market across the U.S." The company expects its net debt-to-adjusted EBITDA ratio will return to its target 2.5x range within approximately three years of closing this transaction.

According to the press release, Stankey will provide more details on the company’s multi-year growth strategy during his conference appearance scheduled for Tuesday, September 9. For investors seeking deeper insights into AT&T’s financial health and growth prospects, InvestingPro offers an extensive research report with 8 additional ProTips and comprehensive analysis of the company’s competitive position in the telecommunications sector.

In other recent news, EchoStar announced it will sell its spectrum licenses to SpaceX in a deal valued at approximately $17 billion, which includes up to $8.5 billion in cash and up to $8.5 billion in SpaceX stock. This transaction has raised concerns about increased competition in the telecommunications sector, particularly impacting companies like T-Mobile, AT&T, and Verizon. Meanwhile, AT&T has also been active in the spectrum market, agreeing to acquire a substantial block of low and mid-band spectrum from EchoStar for $23 billion. As a result of this acquisition, S&P Global Ratings revised AT&T’s outlook to stable, citing an expected increase in leverage.

In addition, Goldman Sachs has upgraded AT&T’s stock to a Buy rating, highlighting the company’s strong growth prospects in fiber broadband. The analyst firm pointed to AT&T’s guidance for mid-to-high teens fiber broadband growth for 2025 and mid-teens annual growth through 2027. AT&T reported 18% fiber revenue growth in 2024, with fiber connections increasing by 12% and average revenue per user (ARPU) rising by 4%. Furthermore, Bernstein SocGen Group raised its price target on AT&T to $32, maintaining an Outperform rating. These developments indicate a dynamic period for AT&T as it navigates new opportunities and challenges in the telecommunications landscape.

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